Her Majesty’s government just reclassified Uber drivers from contractors to employees, The Guardian reported. The Employment Appeal Tribunal rejected Uber’s argument that drivers are not employees because they do not work fixed work schedules.

This upends Uber’s business model because it would require the company to provide all the generous benefits, employees are entitled to under British law. That includes union representation and the high taxes that support Britain’s welfare state. Uber has been leaching off the UK’s welfare state because its’ drivers enjoy benefits like free healthcare from the National Health without paying for them.